Vodafone Idea Jumps 7% As Centre Signals Relief In AGR Case At SC | Markets News

Vodafone Idea

Vodafone Idea shares surged 7% on September 19 after the Centre told the Supreme Court that it was not opposing the telco’s plea in the adjusted gross revenue (AGR) case and added that “some solution is required.”

“Not opposing Vodafone Idea plea, some solution is required, government is also an equity holder. Some solution may be required, subject to Supreme Court approval,” the Centre said before the apex court, as reported by CNBC-TV18.

The Supreme Court will next hear the case on September 26 regarding the government’s additional AGR demand. “There has to be some finality to these proceedings,” the bench led by Chief Justice of India B.R. Gavai remarked orally. Solicitor General Tushar Mehta, appearing for the government, noted that the Centre has infused 49% equity into Vodafone Idea in the larger public interest and urged the court to grant indulgence, citing changed circumstances from earlier petitions.

At 12 pm on September 19, Vodafone Idea’s stock was trading 6% higher at Rs 8.31 after touching an intraday high of Rs 8.42.

Earlier this month, Vodafone Idea approached the Supreme Court seeking to quash an additional Rs 9,450 crore AGR demand by the Department of Telecommunications (DoT). The telco argued the fresh dues exceeded the scope of the Court’s 2020 ruling on AGR liabilities, which had settled dues up to FY17.

The DoT’s revised calculation included updated licence fee obligations for both the pre-merger Vodafone Group and the post-merger Vodafone Idea Ltd through FY19. Out of the total Rs 9,450 crore demand, Rs 5,675 crore pertains to Vodafone’s pre-merger liabilities, while Rs 2,774 crore relates to the post-merger entity (Idea Group and Vodafone Idea) after their August 2018 consolidation.

The telco said Rs 5,606 crore of this demand had already been settled as part of dues up to FY17, and alleged duplication in the DoT’s calculations. It also requested a full reconciliation of all AGR dues for the pre-FY17 period.

On March 18, 2020, the Supreme Court had locked Vodafone Idea’s AGR dues till FY17 based on DoT’s calculations, ruling that no self-assessment or re-assessment would be allowed. Despite this, the DoT has now sought extra payments for FY18-19.

Vodafone Idea argued the revised demand would intensify its financial stress as it struggles to raise funds for 4G expansion and 5G rollout to compete with Reliance Jio and Bharti Airtel.

Vodafone Idea owes about Rs 83,400 crore in AGR dues, with instalments of around Rs 18,000 crore due annually starting March 2026 after the moratorium period ends. Overall, its total dues to the government, including penalties and interest, stand at nearly Rs 2 lakh crore.

The telco has nearly 198 million subscribers and more than 18,000 employees. In its petition, it warned that the additional demand threatens its survival and “the livelihood of thousands of employees working directly or indirectly.”

The company also disclosed that if spectrum usage charges for the period up to FY17 are considered along with the AGR dues, the total additional liability rises to about Rs 6,800 crore as of March 31, 2025.

Although the government had converted over Rs 53,000 crore of dues into equity last year, providing temporary relief, Vodafone Idea said it urgently requires fresh capital to stay competitive against larger rivals.